Sirius XM Radio
Sirius XM Radio, Inc. (NASDAQ: SIRI) is the holding company for two satellite radio services (SDARS) operating in the United States and Canada, Sirius Satellite Radio and XM Satellite Radio. The two parent companies completed their merger (technically the acquisition of XM by Sirius) on July 29, 2008.
On February 19, 2007, Sirius Satellite Radio and XM Satellite Radio announced a merger that would combine the two radio services and create a single satellite radio network in the United States. The merger would bring both companies a total of more than 18.5 million subscribers based on current subscriber numbers on the date of merging.
The proposed merger was controversial because in 1997, the FCC only granted two licenses and, in order to ensure a state of competition, stipulated that one of the holders would ’not be permitted to acquire control of the other.’
Each share of XM stock was replaced with 4.6 shares of Sirius. Each company’s stockholders initially retain approximately 50% of the joined company. Sirius CEO Mel Karmazin is the CEO of the new company, and XM chairman Gary Parsons is likewise the chairman. XM CEO Hugh Panero stepped down from his company in August 2007.
On February 19, 2007, Sirius Satellite Radio and XM Satellite Radio announced a merger that would combine the two radio services and create a single satellite radio network in the United States. The merger would bring both companies a total of more than 18.5 million subscribers based on current subscriber numbers on the date of merging.
The proposed merger was controversial because in 1997, the FCC only granted two licenses and, in order to ensure a state of competition, stipulated that one of the holders would ’not be permitted to acquire control of the other.’
Each share of XM stock was replaced with 4.6 shares of Sirius. Each company’s stockholders initially retain approximately 50% of the joined company. Sirius CEO Mel Karmazin is the CEO of the new company, and XM chairman Gary Parsons is likewise the chairman. XM CEO Hugh Panero stepped down from his company in August 2007.